More US sanctions for Turkey if they don't obey

When asked about the impact of the United States spat with Turkey on the country's currency, the spokeswoman said Washington was "monitoring the situation".

"We have responded to (U.S. sanctions) in accordance to World Trade Organization rules and will continue to do so", Pekcan told reporters on Friday.

He said: "We put sanctions on several cabinet members".

The lira, which has lost some 40 per cent of its value this year, weakened beyond 6.21 against the US dollar after the news, from 6.04 beforehand.

The United States has already imposed sanctions on two Turkish government ministers and doubled tariffs on Turkish steel and aluminium imports.

US Treasury Secretary Steven Mnuchin suggested Thursday the next spiral of tit-for-tat sanctions was coming soon, in a sign of a deepening spat. "Working with you, we have more that we're planning to do if they don't release him quickly".

A court refused to release Mr Brunson, and the the government in Ankara increased tariffs on imports from the USA of cars, alcoholic drinks and leaf tobacco - and the lira recovered slightly. Trump said on Twitter.

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He also urged Brunson to serve as a "great patriot hostage" while he is jailed and criticized Turkey for "holding our wonderful Christian Pastor".

The court's decision came as Turkey and the United States exchanged new threats of sanctions, keeping alive a diplomatic and financial crisis that is threatening the economic stability of the North Atlantic Treaty Organisation country.

Earlier, US President Donald Trump prefaced Mnuchin's remarks by saying that Turkey had not been a very good friend to the US. "He's an innocent man".

Mr Trump's national security adviser, John Bolton, had issued a blunt warning to Turkish ambassador Serdar Kilic when he met him on Monday at the White House, an administration official said on Thursday. "They can't take our people".

Mr Brunson has been in prison in Turkey since 2016 and is accused of being involved in the coup against President Tayyip Erdogan. Mr Gulen denies the allegations. "Having said that, we fully support the president's approach". They made up this phony charge that [Brunson] is a spy and he's not a spy...

The lira's months-long slide has accelerated as a result of the diplomatic standoff with Washington over Brunson's detention. Investors also fret over Erdogan's influence over monetary policy.

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